No glitter in gold markets; thousandsof livelihoods at stake in Western UP
MEERUT, May 23 -- In the narrow lanes of Meerut's Sarrafa Bazaar, where the sound of gold polishing machines and hammering tools usually continues late into the night during the wedding season, an unusual silence has taken over. Showrooms that are typically crowded with families buying bridal jewellery now appear half-empty, while workers sit outside workshops waiting for orders that are no longer coming.
The anxiety spreading through the bullion markets of Meerut and Bareilly began after Prime Minister Narendra Modi, during a recent public gathering in Hyderabad amid the ongoing West Asia crisis, appealed to citizens to avoid buying gold for a year in the interest of the national economy. What was projected as a call for "economic patriotism" has rapidly triggered panic across one of North India's largest jewellery ecosystems.
For thousands of jewellers, artisans, polish workers, designers, wholesalers, and daily wage labourers, the appeal has translated into something far more immediate - fear over survival.
At Anand Jewellers in Meerut, owner Rakesh Anand pointed towards rows of bridal sets lying untouched inside glass showcases.
"Usually during this period, customers barely find space to sit. Now, the showroom looks deserted. Our footfall has fallen by nearly 50% in just a week," he said.
According to traders, the decline has come despite the ongoing wedding season, traditionally considered the most profitable period for the bullion industry.
"We had stocked inventory worth crores anticipating heavy wedding demand," Anand said. "Now, that capital is blocked. Salaries, rents, electricity bills, loan repayments - everything continues, but sales have suddenly stopped moving," he added.
Across Bareilly's jewellery market, traders described a similar decline in customer confidence. Sanjay Rastogi said families with confirmed weddings were sharply cutting purchases.
"People are confused and frightened. Even families with confirmed weddings are drastically reducing purchases. A family that planned to buy 200 grams is now limiting itself to 50 grams only for rituals," he said, adding that daily sales at his establishment had fallen by nearly half.
Meerut's jewellery economy extends far beyond luxury showrooms. The city has developed into one of Western Uttar Pradesh's major jewellery manufacturing and trading hubs, with industry estimates suggesting that more than 5,000 jewellers, workshops, refiners and allied businesses operate within the ecosystem. Annual turnover linked to the trade is estimated at nearly Rs.5,000 crore.
The sector also supports a vast informal workforce comprising goldsmiths, polishers, engravers, gemstone setters, mould makers, transporters, packaging workers and delivery staff. Trade associations estimate that over 50,000 families in Meerut alone depend directly or indirectly on the bullion industry.
"This is not just about wealthy jewellers. An entire employment chain is connected to gold," said Rajkishore Rastogi, president of the Meerut Bullion and Jewellers Association.
The association recently submitted a memorandum to the Prime Minister seeking intervention and safeguards for the sector.
The sharpest impact is now visible in the workshops operating behind the retail markets. In a small polishing unit in Bareilly, 42-year-old artisan Ramesh Kumar sat beside idle machinery.
"For twenty years, I have survived on daily wages earned through polishing work. For the last week, work has almost disappeared," he said.
According to Kumar, showroom owners have stopped placing fresh manufacturing orders as customer demand has slowed.
"If this continues for one year, families like ours will starve," he said, adding, "Economic patriotism sounds good on television, but it is taking away the bread from our plates."
Artisans said the industry was already under pressure due to fluctuating gold prices, GST-related compliance and rising hallmarking costs.
Ashutosh Agarwal, associated with an MSME promotion organisation, warned that the latest slowdown could devastate small craftsmen operating without financial security.
The uncertainty has also affected middle-class families preparing for weddings. In many North Indian communities, gold jewellery remains an essential part of marriage ceremonies and is viewed as long-term financial security for brides.
Meerut resident Sunita Sharma, whose daughter is getting married next month, described the dilemma many families now face.
"We spent years saving for our daughter's jewellery. Now we feel conflicted. If we buy gold, it feels like we are ignoring the Prime Minister's appeal. But if we do not buy it, society will judge us," she said.
"For middle-class families, gold is not luxury shopping. It is a cultural necessity," she added.
Mahendra Pal, another parent arranging a wedding, echoed similar concerns.
Small household investors have also turned cautious. Meerut-based investor Aman Gupta said he had traditionally purchased small gold coins instead of investing in stock markets.
"I do not trust volatile financial markets. Gold always felt safe for middle-class families like ours," he said.
However, Gupta admitted the Prime Minister's remarks had created confusion.
Trade bodies in Meerut and Bareilly are now seeking formal clarification from the government regarding whether the appeal applies only to investment-driven purchases or also to ceremonial buying linked to weddings and festivals.
Joint Trade Committee president Naveen Kumar Agarwal and general secretary Vipul Singhal warned that a major fall in gold demand could affect millions linked to the sector.
Industry representatives have also sought relief measures, including waiver of hallmarking fees for small jewellers for at least one year. Association general secretary Sanjeev Agarwal said the industry had historically supported national causes.
"We are not opposing national interest. But patriotism should not result in mass unemployment," he said.
While some traders believe the panic may ease if the government clarifies its position, others fear consumer behaviour may already have shifted.
"If gold buying stops, the ripple effect will spread everywhere," said Vijay Anand Agarwal, general secretary of the Meerut Bullion Traders Association.
"The country's interest is supreme. But the livelihoods of artisans and small traders are also part of the nation's economic backbone," he added....
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